Pensions

abaxas

worldtraveller wrote: »

For anyone interested, the following Fidelity 'Retirement Calculator' is pretty good at giving at least some idea of what is required in terms of investment for retirement, according to your own retirement plans/wishes.

Please note that I don't work for them, but I do invest with them and naturally there is some marketing involved. However, it's a generally useful tool, but, at the same time, some people may be shocked as to what may be needed for a comfortable retirement in future years!

https://www.fidelity.co.uk/investor/pensions-retirement/approaching-retirement/myPlan-Retirement-Snapshot.page?smid=ftm2m26d

Had a bit play, and with current saving/contribution. I retire at 46 (11 years time)

WOHOOO

PasturesNew

WHOOOOOOOSH ... that's the noise it always makes as it flies way over my head.

I want to understand, but I don't. I read these sort of threads hoping to understand ... and all they do is make me run off and cry because I don't. It's not easy, it's all foreign, the goalposts forever change... and that's why most people don't do anything, because we don't understand, even if we try to ... and then you have to make decisions based on some future point that might or might not happen, or might not happen how you planned it.

Or, you might lose it all anyway somehow. 1001 ways to lose it all.

PasturesNew

abaxas wrote: »

Had a bit play, and with current saving/contribution. I retire at 46 (11 years time)

WOHOOO

I'm older than that and have no pension yet

PasturesNew

worldtraveller wrote: »

https://www.fidelity.co.uk/investor/pensions-retirement/approaching-retirement/myPlan-Retirement-Snapshot.page?smid=ftm2m26d

Tried this, it asks you 6 questions:

1) Age. Fine, I know that one.
2) How much do you earn? The scale doesn't go down low enough for me; on the other hand I hope to get a job next year so I guessed at how much I might earn in that.

If you've no idea what you're doing tomorrow, never mind next year, or in 10 years ... 20 years ... then it starts off as meaningless pokes in the dark.

I had a go anyway, good toy to play with. So thanks.

If I save £1000/month and retire at 91 I will get £239-272k/year. Brilliant. I'll go for that one then

Question is, when I am 91, how much will that be worth in today's values?

chucky

worldtraveller wrote: »

For anyone interested, the following Fidelity 'Retirement Calculator' is pretty good at giving at least some idea of what is required in terms of investment for retirement, according to your own retirement plans/wishes.

Please note that I don't work for them, but I do invest with them and naturally there is some marketing involved. However, it's a generally useful tool, but, at the same time, some people may be shocked as to what may be needed for a comfortable retirement in future years!

https://www.fidelity.co.uk/investor/pensions-retirement/approaching-retirement/myPlan-Retirement-Snapshot.page?smid=ftm2m26d

that is good - but the H&L one allows you to mess about a bit more with your expected Annual Growth, Pension Increase and Payment Frquency.
http://www.h-l.co.uk/pensions/interactive-calculators/pension-calculator

PasturesNew

One question: on the age slider, when I go from 64 to 65, the amount doubles ... is that right? why? or is it a bug?

kabayiri

An open question here...

Haven't annuity rates dropped significantly over the last couple of years?

Isn't this factor key in the return from your pension?

ninky_2

it misses the crucial question 'what age do you intend to die'?

it also assumes that you have some level of disposable income which, as pastures points out, is not always the case.

Andy_L

Harry_Powell wrote: »

I'm afraid I still don't understand why the pension would take so long to match the value of the non-pension investment. ISA's and Pensions are just tax wrappers placed around investments, the investment makes the same amount of money regardless of whether they're in an ISA or Pension, the only difference is the tax treatment.

Assuming its not using an RPI increasing annuity, which seems unlikely, I suspect it's because:
"it still took a further 26 years for the pension to catch up with the non pension investment (by catch up I mean become worth more than the capital of the non pension investment)."

So he's not taking capital out of the ISA & can only spend the interest. ATM that means ~1/2%? for cash (unless you take stockmarket risk in which case its an apples & oranges comparisson) whilst you're getting 5%ish on a level annuity. It's likely in that case you'd have to dip into your capital which means the pension catches up quicker, or have a worse standard of living than the annuity taker

Old_Slaphead

kabayiri wrote: »

An open question here...

Haven't annuity rates dropped significantly over the last couple of years?

Isn't this factor key in the return from your pension?

Yes, down about 10% (mainly due to Govt's QE)

Yes it is a key factor